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ENTITY
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The Washington Post Company

Origin of Relationship

Berkshire Hathaway began buying shares of The Washington Post Company in 1973 during a depressed stock market, accumulating a 10% interest (467,150 shares) for $10.6 million.

Major Milestones

YearEvent
1973Initial purchase of 467,150 Class B shares for $10.6 million.
1974Warren Buffett joins the Board of Directors, forming a close advisory relationship with CEO Katharine Graham.
1975Buffett declares the Post investment as a permanent holding, noting its stock market price is irrelevant compared to business results.
1984The investment grows in value to over $200 million, driven by Katharine Graham's massive share repurchases.
2011Warren Buffett resigns from the board after 37 years of service.
2014Berkshire exits its Washington Post holding via a tax-efficient asset swap with Graham Holdings.

Strategic Importance

The Washington Post Company is a foundational pillar of Berkshire's investment philosophy:

  1. Extreme Margin of Safety: Buffett purchased the stock at a total enterprise valuation of ~$80 million, when the underlying assets (newspaper, television stations) were worth at least $400 million. This demonstrated that public equity markets can offer discounts that are impossible to find in negotiated private transactions.
  2. Rational Capital Allocation (Katharine Graham): Rather than trying to expand through overpriced acquisitions to build an empire, Katharine Graham repurchased nearly 40% of the company's outstanding shares at undervalued prices, multiplying the per-share value of continuing owners like Berkshire.
  3. Passive Concentration: The Post investment proved that a concentrated portfolio of excellent, passively held businesses could outperform active business operations.

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